Employer Responsibilities in the UAE
In the UAE, the employer bears full responsibility for the employee, including:
- Sponsorship of the residency visa.
- Payment of salaries and bonuses.
- Provision of medical insurance (mandatory, at least in basic coverage).
- Provision of accommodation and transport (if applicable).
- Payments through WPS — Wage Protection System.
ImportantThe employer is not allowed to charge the employee for visa processing, medical insurance, or administrative fees.
Also important: all employees in your office must be officially registered and have a valid residency visa from your company. In case of a random inspection (e.g., from the municipality — Bolidia), the fine can be up to 50,000 dirhams for each unregistered employee.
Employee Responsibilities
Employees are required to:
- Comply with the terms of the employment contract and internal rules.
- Have qualifications relevant to the position (the diploma must be relevant).
- Arrange unemployment insurance — ILOE. This is a mandatory contribution paid by the employee, protecting in case of company bankruptcy or job loss for reasons beyond their control.
How is Employee Hiring Conducted in the UAE?
- Obtaining a quota.
A quota is not a visa, but a “slot” for a job position. Without it, you cannot start processing an employee's visa. - Employment contract.
Signed even before the worker arrives. The contract is a mandatory basis for issuing an entry permit. - Residency visa.
After obtaining the e-visa permit for issuing a residency visa (formerly known as entry permit), the employee arrives in the UAE, undergoes a medical examination, arranges an Emirates ID, and receives the visa. - Arranging medical insurance.
This is the employer's responsibility. Without a policy, the residency visa cannot be activated. - Registration in the ILOE system.
This is done by the employee. The contribution is paid monthly or annually.
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What Should Be Considered?
Your license and type of activity determine which positions you can open.
- The quota depends on the office area (on average — 9 m² per employee).
- Free zones and mainland companies have different rates and terms for opening quotas.
- The employment contract system does not include job descriptions — these are arranged by the employer.
- An incorrect diploma can lead to visa denial (e.g., an accountant with a psychology diploma will not pass).
What to Do in Case of Disputes with Employees?
All labor disputes are handled through the appropriate structures:
- For mainland companies — Ministry of Labor.
- For free zone companies — zone administration.
Regardless of the form, all parties must comply with federal labor law.
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